Anyone planning to cash out (what's left of) 401k before Jan. 20? [vanity]

self | 1/13/09 | NewJerseyJoe

[NewJerseyJoe]

Any FReepers planning to cash out what's left of your 401k accounts before his messiah-ness is coronated? Even with (a) reduced value of 401ks currently, (b) taxability, and (c) early withdrawal penalty, it could be a good idea -- especially considering that some Dems in Congress have already talked about "safeguarding" (i.e., confiscating) our hard-earned money.

[Sunshine Sister]

You have it exactly right. Watch those creeps in Washington closely. They will think nothing of stealing your money for your own good to, don’t cha know.

[Chances Are]

You didn’t really think I’d leave myself without an out, did you?

What, BTW, is the basis of the claim you made in post 27?

CA....

[philled]

Not me- I've got 25 years to ride it out. I'm trying to tell myself that right now the losses are just on paper- I have the same number of shares that just aren't worth as much. They'd become real losses if I were to cash out. Plus, I'd take the ten percent penalty on top of my tax rate. So, I'd be looking at only getting 65% of the 60% that I have left- that would really compound the damage!

Actually, with share prices so low (I'm mainly in a target-retirement year fund), I'm keeping my 401K contributions as a double-digit percentage as I'm buying a lot more shares every paycheck than I was last spring. I've reduced my contribution a bit- I'm now picking up some company stock through an ESOP at a 15% discount of what is currently splitting the difference between the 52 week hi and low.

Of course, I don't know if this is a good idea and I never, ever stay at Holiday Inn Express hotels.

[stockpirate]

If I understand your question it was when you wrote, “it may be a good idea”.

That is where the problem exists, but with “check with your own atty or investment advisor before making any changes” may just do the trick.

Notice that investment letters have something to that affect.

[SamiGirl]

Mine is in a guaranteed interest fund. I pulled out of the market before it tanked. I'm just worried that it will get confiscated by the Gov.

[Terpin]

I lost 35% last year, so at age 38 I’m investing more than last year. I figure everything is on sale, right? I’ll get more shares. (Already got the guns, ammo, food, and water.)

I do worry about the government trying to sieze it , though. If that doesn’t cause a revolution, nothing will.

[edge10]

What ever happened to Zero’s promise/idea that we should be able to withdraw our money penalty free for 2008 & 2009???

[WOBBLY BOB]

a friend of mine makes $300k/year doing that.

business is up.

[blam]

"Buy tillable land, seeds, guns and ammo."

Good advice.

If you can't afford precious metals, buy heavy metals, ahem.

[blam]

"Just got a note from my nephew who is running a hedge fund. he says they think things are gonna get really bad."

Anything specific?

[PeterPrinciple]

As an observation, many business and governments have been holding back on decisions because there is “free money” coming. I think there will be a good short term feeling of it working as the money is released and spring comes around(spring is always better for the economy). Notice, I said short term, then we will need another “fix”.

A poster on another site from the forestry service says they are being asked what unfunded projects are on the table. The money will give a short term fix.

Our gov in his state of union address said we will put together a tough budget but it was clear he expects “gravy” money from Obama.

[varon]

I've thought about it. But, what do you do with the money?

Invest it in drugs, the street kind. It's the best MLM program out there.

[SamiGirl]

LOL. Multi-level marketing? You’re funny.

[ErnBatavia]

Don’t forget your gold...

Yeah, that's the ticket....Achmed down at the convenience store is all set up to accept gold dust for a six-pack, dozen eggs and a quart of milk.

[ErnBatavia]

Oh you kid! I hit that point 4 years ago.

...did the registration thing 10 days ago, and first nip o' the tit will arrive in June. It's my turn now.

Wifey is exactly eight days younger than I, so she'll also be suckling up very shortly. We'll be riding the X'ers into the sunset, and happily so.

[woofie]

thats all he said...but the kid made a boat load of money calling this meltdown

[markomalley]

2017 is coming and nothing will stop it (when social security hits high water and starts cashing in its bonds).

My 401k, military retirement, and social security will not survive that event, even if they all survive the 111th Congress.

So why bother?

[nufsed]

www.usretirementrevolution.com

[Rick_Michael]

You could put it in stable money markets...ie transfer it away from stocks.